As the United States labor shortage rages on, many companies struggle to hire a sufficient number of employees. One solution that can help companies ramp up hiring in the short term is temp-to-hire staffing. In a temp-to-hire arrangement, a company hires an employee for a predetermined time period. At the end of this period, the company can then decide whether or not to offer a permanent position.

This hiring strategy provides flexibility in hiring as well as risk mitigation for companies that can’t afford to waste time and resources. In this article, we’ll look at some temporary-to-permanent staffing advantages. Read on to discover what situations are best suited to temporary staffing solutions, temporary staffing trends, and how to find the right temporary hire.

Temp-to-Hire Staffing: An Overview

Between the labor shortage and inflation, many companies can’t afford to make a permanent hire only to find that it isn’t a good fit. Temp-to-hire staffing provides hiring managers solutions to try a new employee out before hiring them permanently.

In a temp-to-hire arrangement, a company hires an employee for an agreed-upon time frame. This probationary period varies, but a typical time frame is 3-6 months. At the end of this period, the company and employee can decide whether or not to make the hire permanent. Other terms for temp-to-hire staffing include “temporary employee,” “temporary-to-permanent,” and “temp-to-direct.”

It’s important to note that temporary employees are not the same as contractors and contract workers. A contractor is usually self-employed and not an employee of the company.

Because temp-to-hire staffing has a set time frame, companies often have an easier time filling these roles than permanent positions. More companies have turned to these customized staffing solutions in recent years to fill employment gaps in the face of the labor shortage.

Temporary-to-Permanent Staffing Advantages

Temp-to-hire staffing offers several advantages over traditional direct hiring. Even for companies looking for a long-term employee, a temporary hire often leads to a full-time position if the worker is a good fit. Here are some of the benefits of temp-to-hire staffing:

Flexibility in Workforce Management

Businesses grow at different rates based on a wide range of factors. Businesses in emerging sectors like tech and healthcare often experience rapid growth. The workforce flexibility benefits of temp-to-hire staffing can help companies keep up with unpredictable growth rates.

In some cases, a business may experience a temporary surge, necessitating more workers. However, after this surge, it may not be cost-effective to keep all the new hires. Tax companies are a good example since they have more business during tax season. They can hire temporary workers to help during the peak business season. Then, as business slows, they can evaluate whether making the new hire a permanent employee makes sense.


Temp-to-hire staffing can also be a cost-effective staffing solution for businesses with tight recruiting budgets. From job listings to interviews to training, hiring a new employee often costs thousands of dollars. The hiring process for a temp-to-hire position is usually speedier than traditional permanent hiring. Hiring managers can avoid the increased turnover that results from permanently hiring the wrong candidate.

Another important factor that can make temp-to-hire a money-saving solution is employee benefits. In most cases, a temporary employee doesn’t get benefits until the company hires them permanently. With this strategy, companies can save on enrolling new hires in benefits right away. This can also free up time for your HR team so they can focus their efforts on permanent hires.

Reduced Hiring Risks

Hiring a new employee comes with inherent risks. A poor hiring decision can have far-reaching consequences for an organization. Not only do temp-to-hire HR staffing strategies offer a flexible arrangement, but they also give both parties time to assess the fit.

Like a probationary hiring period, a temporary hire can give companies a window of time to decide whether to keep the employee as a permanent hire. This reduces the risk of onboarding a new hire only to have to replace them shortly after.

Access to Skilled and Pre-Screened Candidates

Another benefit of temporary hiring is the access to skilled temporary workers. At Labor Finders, we specialize in supplying pre-screened temporary staff for our clients. Our expert team of staffing agents helps clients find the most qualified temp-to-hire staff for industries including:

  • Construction

  • Manufacturing

  • Retail

  • Maintenance

  • Logistics

  • Hospitality

  • Landscaping

Whatever industry a business needs help hiring for, we find job seekers with the right skills and experience. Labor Finders staffing benefits both workers and employers looking for industry-specific staffing solutions.

Smooth Transition to Permanent Roles

Unlike direct hiring strategies, the temp-to-hire model offers the opportunity for seamless staffing transitions. After the set time frame of the temporary hire, both the worker and the employee can decide whether to move forward with a permanent position. More importantly, if it isn’t a good fit, the employment termination process is faster and simpler than with a permanent hire. Rather than actually firing the employee, the company can simply not offer a permanent position.

If, on the other hand, both parties are happy with the arrangement, the employee is perfectly positioned to move into a permanent role. The temporary hiring period offers ample time for training, so onboarding a temporary employee into a permanent position is much simpler than with a new hire.

Case Studies and Success Stories

There are several temporary staffing success stories and case studies in temp-to-hire staffing that demonstrate its value. In addition to its benefits for employers, temp-to-hire staffing helps workers with barriers to entry into the workplace find employment. These workers include those with disabilities or gaps in education or employment history.

With the temp-to-hire model, companies can more easily afford to give these workers a chance to demonstrate their work ethic. If companies only use direct hiring, they may be missing out on a pool of candidates that may prove to be the right fit, given the opportunity.

Customized Staffing Solutions For Your Unique Needs

At Labor Finders, we have staffing solutions for businesses of all sizes across the United States. We have over 200 locally owned offices nationwide to give our clients the personalized service they deserve. Whether you need a direct-hire employee or a temp-to-hire staffing solution, we’ll help you find the perfect hire. Contact us today to learn how we can provide the ideal candidate for your organization.

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